"The consolidation of public finances will follow the objectives that have been clearly set"
-Slovenia's finance ministry
Even despite the nation's plan, which is projected to stabilise public finances and lead to an economic recovery, Slovenia's credit rating was downgrade by the Fitch agency. Fitch cut Slovenia's main debt rating to 'BBB+' down from A-, with a negative outlook; saying that macroeconomic and fiscal outlook has deteriorated significantly. As the nation was widely tipped as the next country to require a bailout from the European Union and International Monetary Fund, another downgrade of credit rating could substantially raise the cost of borrowing for politicians, raising concerns that soon a bailout will be needed. In an attempt to raise funds as quickly as it is possible and avoid asking for international bailout, the government now plans to start privatizing some of its state-owned companies in September.
"The consolidation of public finances will follow the objectives that have been clearly set," Slovenia's finance ministry said in a statement. "We will efficiently carry out all the necessary measures drawn in its stability and reform programmes."
"The agency now forecasts a 2% contraction in real GDP in 2013 and a decline of 0.3% in 2014, when Slovenia is expected to be one of only two eurozone economies to contract," Fitch agency said.
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